The key aspects of this new law are:
- Available for companies with liabilities under $A1 million.
- A moratorium from creditor actions (including personal guarantees) will occur following a resolution of the board/directors to appoint a Small Business Restructuring Practitioner (SBRP) to assist with the collation of a plan.
- Directors remain in control while they collate the plan with the assistance of the SBRP.
- The plan is circulated to creditors within 20 business days (4 weeks).
- The plan must include certain prescribed matters but can otherwise be in any format the directors determine and would be expected to involve a discount or delayed timing of any return to creditors. Consideration of the plan and expected return is likely to be co…